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CBP Revokes and Modifies Classification and Origin Marking Rulings

Tuesday, September 27, 2016
Sandler, Travis & Rosenberg Trade Report

The following proposed and final revocations and modifications of U.S. Customs and Border Protection rulings are included in the Sept. 21, 2016, Customs Bulletin and Decisions. Comments on the proposed revocations and modifications are due no later than Oct. 21 and the final revocations and modifications will be effective for goods entered or withdrawn from warehouse for consumption on or after Nov. 21.

Focaccia. CBP is proposing to reclassify frozen focaccia, consisting of a flat bread base topped with vegetables, as other frozen baked products under HTSUS 1905.90.1049 (duty-free) rather than as other bakers’ wares under HTSUS 1905.90.9090 (4.5 percent duty). Ruling NY J89472 would be revoked to reflect this change.

Printed Artwork. CBP is reclassifying certain printed artwork as other lithographs on paper under HTSUS 4911.91.2040 (duty-free) rather than as posters under HTSUS 4911.91.2020 (duty-free). This item is a picture with a lattice design that is lithographically printed on paper that is glued to a medium-density fiberboard surface and coated with acrylic gel to give it a textured appearance. CBP explains that this item does not appear to fit the meaning of a poster because it is not a bill or placard for posting often in a public place or a sheet bearing an announcement for posting in a public place. Ruling HQ H265036 will modify ruling NY N265121 to reflect this change.

Bicycles. In ruling NY N269994 CBP cited a previous ruling in holding that bicycles manufactured abroad and assembled into complete and finished bicycles in the U.S. were substantially transformed and that the country of origin of the complete bicycles is the U.S. However, CBP has determined that the facts in the previous ruling were misinterpreted and misapplied; i.e., the frames were manufactured in the U.S., not abroad as is the case with the bicycles at issue, and combined with imported and domestic parts into a complete bicycle. CBP is therefore issuing ruling HQ H273304 to revoke ruling NY N269994 to reflect that because the frame is perhaps the most essential component of the finished bicycle it imparts the country of origin of the bicycle, which must be marked accordingly.

Luggage and Other Bags. CBP is reclassifying a rolling Pullman case, backpacks, a tote bag, and an insulated lunch bag as bags with an outer surface of other than textile materials under HTSUS 4202.12.20 (20 percent duty; Pullman case), 4202.92.10 (3.4 percent duty; lunch bag), and 4202.92.45 (20 percent duty; backpacks and tote bag) rather than as bags with an outer surface of textile materials under HTSUS 4202.12.8070 (Pullman case; 17.6 percent duty), 4202.92.0807 (7 percent duty; lunch bag) and 4202.92.30 (17.6 percent duty; backpacks and tote bag). CBP explains that while it has generally determined that the material comprising the bulk of the exterior surface area of a bag imparts its essential character, the plastic front panel of an insulated food or beverage bag might impart the essential character when its style significantly outweighs other factors. With respect to the bags in question, CBP states that the plastic front panels feature popular cartoon characters and thus have “an immediate visual appeal that is geared toward children, a particularly demanding and vociferous group of customers who are not likely to concern themselves with the composition, cost, sturdiness, or durability of a bag as opposed to the appeal of the design and the specific character represented.” Ruling HQ H275674 is revoking rulings NY M82559, and NY M84189 to reflect this change.

Plant Movers. CBP is reclassifying wheeled movers used to facilitate the movement of potted plants as other metal furniture under HTSUS 9403.20.00 (duty-free) rather than as other vehicles not mechanically propelled under HTSUS 8716.80.5090 (3.2 percent duty). CBP explains that unlike the exemplars listed in Explanatory Note 87.16 these items are not principally designed for the transport of goods or persons but instead are designed primarily for the storage and display of plants and home décor. Ruling HQ H271824 is revoking rulings NY N024680, NY N024678, NY N012582, and NY N012026 to reflect this change.

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